Apartments Fetch Premium Price in Los Angeles Suburb
apartment complex in Cerritos, California, has sold for $48.6 million, well above the average sales price in southern Los Angeles County where new construction and large multifamily trades are rare.
Palos Verdes Management Company LP, a private partnership, acquired the 150-unit property at 18427 Studebaker Road, known as Four Trees, from a partnership of local investors. The complex was built in 1969 on 8.75 acres and was last purchased in July 2014 by Anderson Family Trust, according to CoStar data.
CoStar Analytics data shows the per-unit price of $324,000 is well above the average $256,000 paid during the past year in south Los Angeles County. That area, just north of the border with Orange County, has seen investment activity accelerate as the current economic cycle has matured, with average pricing more than doubling during the past decade.
Multifamily sales volume reached a record $457 million during the past year, with volumes exceeding historical averages for several years as investors priced out of more central Los Angeles markets have looked for value-add opportunities. South Los Angeles apartment vacancy is tight at 3%, but its average monthly asking rent of $1,613 — up 3.4% in the past year — remains well below the Los Angeles regional average, CoStar data shows.
Big South Los Angeles apartment deals of last year included Guardian Life Insurance Co.’s purchase of a 390-unit Lakewood complex for an allocated $137 million — nearly twice the historical high price for that area at the time. Also last year, AvalonBay Communities acquired a 132-unit property in Cerritos, completed in 2017, for $60.5 million.
For the Record
In the recent Cerritos apartment deal, the seller was represented by Laurie Lustig-Bower, Mike McKinney, Kamran Paydar and Nancy Bush of CBRE Group. The buyer represented itself.